A group of banks led by Goldman Sachs Group Inc. launched a sale of leveraged loan that will support the exit of Latam Airlines Group SA from bankruptcy.
The term loan US$750 million will pay existing credits of the debtor in possession and will cover general corporate purposes, according to a person familiar with the matter, who asked not to be identified because the transaction was private. The Santiago-based airline received court approval for a restructuring in June after facing difficulties in getting support from creditors.
The airline Latam manages to agree with holders of bonds issued in Chile
The airline filed for Chapter 11 protection in New York more than two years ago. as one of the largest bankruptcies caused by the covid-19 pandemic. LATAM AIRLINES is entering the lending market just after banks sold a $4 billion deal to buy Citrix Systems Inc. at a deep discount to investors, who demand a premium to buy risky assets as prices rise. recession fears.
The financing also includes $1.5 billion in senior bonds guaranteed, the person said.
The prices of secondary loans fell to 93.74 cents on the dollar on Wednesday, the lowest level since Aug. 2, according to the Morningstar LSTA US Leveraged Loan Price Index.
There is a call with the creditors for the loan scheduled for the September 23 at 11:30 a.m..,ET, the person said.
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